24 September 2026
7 min
When we talk about pension gaps, it's easy to focus on percentages, charts and analysis. But for me, the most powerful insight from the recently issued report “Making Pensions Exciting: Closing the Diversity Pension Gap in the LGPS” was not the data itself. It was the voices of the members behind the numbers.
We were delighted to join forces with the Local Government Pension Scheme Scotland Advisory Board (LGPS SAB) in England and Wales, Investors for Purpose, and the City of Westminster Pension Fund to produce this report. It aims to look further than just gender pension gap, by considering ethnicity and disability gaps and the intersection between these. The insights are invaluable, but it was the member stories that really resonated with me.
Through more than 15 hours of interviews with 30 LGPS members from different ethnicities, genders, ages and backgrounds, a rich picture emerged. Pension inequality is rarely caused by a lack of interest in retirement. It's often the result of life circumstances, caring responsibilities, financial pressures and limited financial education.
Many participants described pensions as jargon-filled and something for older people. Retirement felt distant, while the pressures of daily life felt immediate.
Several women explained how motherhood and caring responsibilities shaped their financial lives. The likes of career breaks, part-time working and childcare costs reduced earnings and pension contributions. Some postponed promotions or career opportunities because family responsibilities had to come first.
Particularly striking were the experiences of single mothers. Pension saving became secondary when every pound was needed for everyday living costs. One participant said her early career decisions were driven by survival and providing for her children, leaving limited capacity to focus on long-term career strategy. Another described being so overwhelmed by work, parenting and finances that there was simply no mental space left to think about pensions.
These stories demonstrate that pension inequality is often the cumulative outcome of wider social and economic inequalities unfolding over decades.
Across the interviews, one theme was consistent: people felt they had received little or no financial education growing up. Most knowledge came from observing parents rather than formal education. Many learned principles such as “live within your means” or “save for a rainy day” but had little understanding of compound interest or pension planning.
Even financially engaged members often had only a partial understanding of how their pension worked. Those approaching retirement frequently shared the same regret: they wished they had started saving earlier at the beginning of their careers.
The issue was not a lack of aspiration. Most wanted a comfortable retirement, or the option to retire earlier. The challenge was that few had translated those ambitions into a clear financial plan.
The quantitative analysis found that members from ethnically diverse backgrounds had accrued around 30% less pension under the CARE scheme than White members. The interviews, however, revealed a more nuanced story.
Many members from ethnic minority backgrounds described strong cultures of family responsibility and financial resilience. Participants spoke about viewing money as part of a wider family support system. Financially disciplined members were also more likely to diversify retirement planning through other investments alongside their LGPS benefits.
One particularly positive finding related to immigrant women. Many demonstrated long-term planning and investment knowledge. This may help explain why, within the case study, Asian women had accrued around 13% more pension than Asian men and Black women around 4% more than Black men.
Perhaps the report’s most important lesson is that pension inequality can't be understood by looking at gender or ethnicity in isolation. The largest disparities appeared at the intersection of the two.
Women from ethnically diverse backgrounds had the lowest pension outcomes overall, accruing around 30% less than White women. Men from ethnically diverse backgrounds had accrued 46% less than White men. Yet the interviews show that these figures are influenced by overlapping factors including length of LGPS membership, migration patterns, family responsibilities and economic circumstances.
One of the most encouraging findings relates to disability. Unlike the gender and ethnicity analyses, the case study found almost no pension gap between disabled and non-disabled members. Disabled members had accrued marginally higher CARE benefits overall, a difference of 0.4%, while pay differences were also relatively small.
This is one case study and further analysis across the LGPS would be valuable. Even so, it offers a positive indication that pension outcomes for disabled members can be broadly comparable with those of their peers.
The report’s title came directly from a member interview: “We need to make pensions exciting.” That does not necessarily mean making pensions entertaining. It means making them relevant and interesting.
People engage when pensions connect to real life: buying a home, raising children, caring for parents, achieving financial independence or retiring with confidence. Members asked for many things; shorter and clearer communications, information tailored to different life stages, small group sessions that start with the basics, alternative formats for different learning needs and access to personalised guidance.
The most powerful contribution of this research is not only the pension gap statistics, although important. It's the reminder that every pension outcome reflects a personal story. If we want to reduce pension inequalities, we need to understand those stories and design engagement, support and communications around the realities members face throughout their lives.
If you'd like to understand what sits behind your gender pension gap, assess whether members are on track for retirement, or use data and targeted communications to drive better outcomes, please get in touch.
Download the Making Pensions Exciting: Closing the Diversity Pension Gap in the LGPS report below.
This blog is based upon our understanding of events as at the date of publication. It is a general summary of topical matters and should not be regarded as financial advice. It should not be considered a substitute for professional advice on specific circumstances and objectives. Where this blog refers to legal matters please note that Hymans Robertson LLP is not qualified to provide legal opinion and therefore you may wish to obtain independent legal advice to consider any relevant law and/or regulation.
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“Pension outcomes are shaped by multiple, overlapping factors. Solutions must recognise that complexity rather than treating members as one homogeneous group.”
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